Security Products Manufacturing Industry Profile

Companies in this industry manufacture electronic security and safety communications equipment such as fire and security alarms, intercoms, and vehicle and pedestrian signaling systems. Major companies include Resideo and divisions of GE Security, and Raytheon Technologies (all based in the US), as well as ASSA ABLOY (Sweden), Nippon Signal (Japan), SWARCO (Austria), and divisions of Johnson Controls (Ireland) and Siemens (Germany).

The global security products manufacturing industry generates about $42.3 billion by the end of 2023, according to Memoori. According to the International Data Incorporation (IDC), security investments spending is expected to reach by $300 billion by 2026. The US and Western Europe are the largest markets, with the Asia-Pacific market as the fastest spending growth regions.

The US security products manufacturing industry includes about 330 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $4 billion. Manufacturers of automatic fire sprinkler systems are not included in the industry.

COMPETITIVE LANDSCAPE

Demand is driven by residential, office, and commercial construction, as well as construction spending for highway, street, and railroad infrastructure. Profitability depends on efficient manufacturing and effective marketing. Large companies compete through advantages in economies of scale and by offering a wide spectrum of products. Small companies can compete by specializing in niche products and through superior customer service. The US industry is highly concentrated: the 50 largest companies account for about 85% of industry revenue.